Zhibao shares jump 24% on proposed $220m Bitcoin PIPE
Shanghai-based insurtech Zhibao Technology is poised to become a bitcoin treasury vehicle after signing a non-binding term sheet to accept 3,500 BTC as payment in a private share sale.
Zhibao Technology has signed a non-binding term sheet for a private investment in public equity that would be paid entirely in cryptocurrency. The proposed buyer, Joyertech and Information OPC, plans to subscribe for newly issued shares using approximately 3,500 bitcoin, an amount valued near $220 million at current prices.
The Shanghai-based insurtech firm, which pioneered a "2B2C" embedded-insurance model in China and launched the country’s first digital insurance brokerage in 2020, would undergo a dramatic shift in corporate control. Under the proposed structure, Joyertech would name a majority of Zhibao’s board upon closing. The current executive team would continue managing the legacy insurance business, but strictly until a later "separation, disposition, or other restructuring."
By taking bitcoin directly as payment rather than raising fiat capital to buy tokens on the open market, Zhibao would instantly acquire a massive crypto treasury. This mirrors a broader market trend where public companies remake themselves around digital asset holdings, effectively functioning as proxy bitcoin investments for equity traders. Zhibao's Nasdaq-listed stock jumped nearly 24% on Wednesday, demonstrating the immediate premium investors place on such balance sheet transformations.
Despite the market enthusiasm, the deal carries significant execution risks. The term sheet binds neither party, and the transaction could still change substantially or fall through entirely. Finalizing the agreement requires navigating complex hurdles, including precise valuation of the shares, establishing secure custody for the digital assets, completing an audit, and securing regulatory review. Any disruption in these areas could easily derail the negotiations.
Furthermore, the ultimate fate of Zhibao’s original operations remains ambiguous for its employees and insurance clients. The broader strategy also faces headwinds. Analysts have increasingly characterized the corporate bitcoin treasury boom as a speculative bubble, noting that several treasury-focused firms have already been forced to sell their digital holdings under market pressure this year.
